Lisa Simpson
Jun 23,2010
In: Foreclosure

Flood Victims Looking for Other Options

Since FEMA grants are insufficient, flood victims are looking for other options. The house of Michael Krieger in Rockvale is less prone to flooding – noted the Federal Government. But only two weeks previously it was drowned under water 3 feet high. Krieger’s family comprises of his wife and three children. He has not been covered by flood insurance.

There are many in the same boat as Krieger in the Middle Tennessee region in the aftermath of the floods this May. The rain fell 13 inches for two continuous days flooding houses and entire localities – the majority of which was not under the umbrella of flood insurance.

The Feds expects flood insurance to be mandatory when lenders grant loans in flood prone regions. This part has referred to as the 100-year-flood-plain. But this year many parts outside this zone took on the brunt of floods; many others were threatened. Some owners of property are mulling over taking legal action against the agents questioning if they were properly informed while purchasing the house.

Krieger bemoans that at the age of fifty three he is still learning new things of life. The Kreigers had paid $2,500 (it included all their savings) to hire workers for tearing out walls, flooring and appliances inside the house. Now they await the arrival of grant from Federal Emergency Management Agency. The maximum amount is $29,900. Even then Krieger estimates that the cost of repairing will be stretch from $10,000 and goes up to $20,000. On top of this he is apprehensive of the lender foreclosure on his unit. But he is at a loss how to keep the wolf from the door.

He would be ruined if he walked away from his home but he would also be ruined if he continued to stay.

Insurance firms buy information relating to flood risks from CoreLogic. According to its estimates over 60% of the properties damaged by flood along the Cumberland River (main) were not covered by flood insurance. The catastrophe runs into billions. About 31,000 persons in the disaster regions of Tennessee have applied for assistance via Federal Emergency Management Agency.

The latter observed that a quarter of the flooding happen in regions where the risk is not grave and hence insurance is not compulsory for either the residential or commercial units. The Federal Government has made it mandatory for the regions prone to high flooding risks.

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